Bandwidth Inc. (BAND) 2019 Q3 法說會逐字稿

Greetings, and welcome to the Bandwidth Third Quarter 2019 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

各位好，歡迎參加 Bandwidth 2019 年第三季財報電話會議。(接線員指示) 提醒各位，本次會議將被錄音。

It is now my pleasure to introduce Sarah Walas. Please begin.

現在我很榮幸為各位介紹 Sarah Walas。請開始。

Thank you. Good afternoon, and welcome to Bandwidth's Third Quarter 2019 Earnings Call. Today, we'll be discussing the results announced in our press release issued after the market close. With me on the call this afternoon is David Morken, Bandwidth's Chief Executive Officer; and Jeff Hoffman, Chief Financial Officer of Bandwidth. They will begin with prepared remarks, and then we will open up the call for Q&A.

謝謝。各位下午好，歡迎參加 Bandwidth 2019 年第三季財報電話會議。今天我們將討論在收盤後發布之新聞稿中所公布的業績結果。今天下午與我一同參與電話會議的有 Bandwidth 執行長 David Morken，以及 Bandwidth 財務長 Jeff Hoffman。他們將先進行事先準備的發言，之後我們將開放問答。

During the call, we will make statements related to our business that may be considered forward looking, including statements concerning our financial guidance for the fourth fiscal quarter of 2019 and the full year of 2019, and to the extent provided future periods, our plans to execute on our growth strategy, our ability to maintain existing and acquire new customers and other statements regarding our plans and prospects. Forward-looking statements may often be identified with words such as we expect, we anticipate or upcoming. These statements reflect our views only as of today and should not be considered our views as of any subsequent date. We undertake no obligation to update or revise these forward-looking statements.

在本次電話會議中，我們將就本公司業務發表若干可能被視為前瞻性之陳述，包括關於我們對 2019 會計年度第四季及 2019 全年之財務指引，以及在提供未來期間資訊的範圍內，我們執行成長策略的計畫、維持既有客戶並取得新客戶的能力，以及其他關於我們計畫與前景的陳述。前瞻性陳述通常可由「我們預期」、「我們預估」或「即將」等字詞辨識。這些陳述僅反映我們截至今日的觀點，不應被視為任何後續日期的觀點。我們不承擔更新或修訂這些前瞻性陳述的任何義務。

Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties that could cause the actual results to differ materially from our expectations. For a discussion of material risks and other important factors that could affect our actual results, please refer to those contained in our 10-K filing on February 15, 2019, as updated by other SEC filings, all of which are available on the Investor Relations section of our website at bandwidth.com and on the SEC's website at sec.gov.

前瞻性陳述並非對未來績效的承諾或保證，且受多項風險與不確定性影響，可能導致實際結果與我們的預期存在重大差異。關於可能影響我們實際結果之重大風險及其他重要因素的討論，請參閱我們於 2019 年 2 月 15 日提交的 10-K 文件，並以其他 SEC 申報文件所更新者為準；上述文件均可於我們網站 bandwidth.com 的投資人關係專區以及 SEC 網站 sec.gov 查閱。

Finally, during the course of today's call, we will refer to certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our press release issued after the close of market today, which is located on our website at bandwidth.com and on the SEC's website at sec.gov.

最後，在今天的電話會議過程中，我們將提及若干非 GAAP 財務衡量指標。GAAP 與非 GAAP 指標之調節表已包含於我們今日收盤後發布的新聞稿中，該新聞稿可於我們網站 bandwidth.com 以及 SEC 網站 sec.gov 查閱。

With that, let me turn the call over to David.

接下來，讓我把電話交給 David。

Thank you, Sarah, and please allow me to introduce you to everyone on our third quarter earnings call today. Sarah Walas joins Bandwidth to lead our Investor Relations efforts. She spent the last 7-plus years at Red Hat here in Raleigh in various finance roles, including Investor Relations Manager. Thank you for joining us, Sarah. We're all excited to be working with you.

謝謝你，Sarah，也請容我在今天的第三季財報電話會議上向各位介紹她。Sarah Walas 加入 Bandwidth，負責領導我們的投資人關係工作。她在羅利的 Red Hat 任職超過 7 年，擔任過多項財務相關職務，包括投資人關係經理。謝謝你加入我們，Sarah。我們都很期待與你共事。

I'm pleased to report that our third quarter results exceeded our expectations on both the top and bottom lines. Our CPaaS revenue increased 24% year-over-year, driving total revenue in the quarter of $60.5 million. We saw continued momentum within our sales and marketing teams, adding 143 net CPaaS customers in the quarter, resulting in a record 39% increase from the prior year, and our ongoing traction with existing customers was demonstrated by our 116% dollar-based net retention rate. These results are evidence that organizations are choosing Bandwidth's software, network and amazing team to deliver the highest quality voice, messaging and emergency services for any application, website or device. Bandwidth has established a reputation as a reliable, scalable platform that successfully serves a diverse range of cloud-native organizations and hyperscaler providers who require a robust communications platform.

我很高興報告，我們第三季的業績在營收與獲利兩方面均超出預期。我們的 CPaaS 營收年增 24%，帶動本季總營收達 6,050 萬美元。我們的銷售與行銷團隊持續展現動能，本季新增 143 位 CPaaS 淨客戶，使客戶數較去年同期創紀錄成長 39%；同時，我們與既有客戶的持續拓展也由 116% 的以美元計價淨留存率所證明。這些成果顯示，各類組織正選擇 Bandwidth 的軟體、網路與卓越團隊，為任何應用程式、網站或裝置提供最高品質的語音、簡訊與緊急服務。Bandwidth 已建立起可靠且可擴展的平台聲譽，成功服務多元的雲原生組織與超大規模（hyperscaler）供應商，這些客戶需要強健的通訊平台。

We continue to gain recognition as a CPaaS provider of choice. In September, Bandwidth was named a leader in IDC's MarketScape worldwide cloud communications platform 2019 assessment. The primary focus of IDC's study was a platform's ability to facilitate the rapid development of real-time communication services that are both easy to create and are scalable. Bandwidth was identified as a pioneer in establishing the segment and an innovative leader among core CPaaS providers across attributes, which included platform capabilities, network infrastructure and ecosystem integration. Our team's dedication and commitment to serving our customers are key elements of our continued recognition and ongoing success.

我們持續獲得作為首選 CPaaS 供應商的肯定。9 月，Bandwidth 在 IDC 的 MarketScape《2019 年全球雲端通訊平台》評估中被評為領導者。IDC 研究的主要重點在於平台是否具備促進即時通訊服務快速開發的能力，且該等服務需易於建立並可擴展。Bandwidth 被認定為該領域的開創者，並在核心 CPaaS 供應商中於多項屬性上屬創新領導者，這些屬性包括平台能力、網路基礎設施與生態系整合。我們團隊對服務客戶的投入與承諾，是我們持續獲得肯定與不斷成功的關鍵要素。

Now let me share a few highlights that demonstrate our continued traction with our customers. First, on our last earnings call, we announced an agreement in principle with a large Fortune 500 company. We are excited to confirm that we signed the definitive agreement soon after our last earnings call, and that our customer agreed to significant exclusivity provisions regarding the vast majority of services that we provide to them. This 5-year agreement is expected to earn Bandwidth tens of millions in committed revenue and makes this enterprise one of our largest customers in 2020. That said, we will discuss in detail that the depth and breadth of this relationship as well as other signed large opportunities are creating a revenue timing issue for the fourth quarter.

接下來我分享幾項重點，展現我們與客戶之間持續增長的合作動能。首先，在上次財報電話會議中，我們宣布與一家大型《財富》500 強公司達成原則性協議。我們很高興確認，在上次財報電話會議後不久即簽署了最終協議，且該客戶同意就我們向其提供之絕大多數服務納入重要的排他性條款。這份為期 5 年的協議預期將為 Bandwidth 帶來數千萬美元的承諾收入，並使該企業在 2020 年成為我們最大的客戶之一。不過，我們也將詳細說明，這段合作關係的深度與廣度，以及其他已簽署的大型機會，正在對第四季的營收認列時點造成影響。

Second, we see consistent and continued growth in messaging from the introduction of our new messaging products in response to industry changes across the messaging landscape. Our messaging solutions have resonated with enterprise customers facing challenges on deliverability and who are seeking the utmost reliability required to deliver mission-critical communications. We recently onboarded a customer with the fastest growing online job site worldwide with 40 million monthly visitors and 50 million job alerts sent each day. The company was challenged by blocked messages with no visibility into the underlying causes. Using Bandwidth's A2P toll-free messaging solution, the company was able to improve visibility with delivery feedback and achieve the requisite throughput and volume required to operate messaging at scale.

第二，隨著我們因應簡訊產業環境變化而推出新的簡訊產品，我們看到簡訊業務持續且穩健的成長。我們的簡訊解決方案已獲得企業客戶的共鳴，這些客戶正面臨送達率方面的挑戰，並尋求提供關鍵任務通訊所需的最高可靠性。我們近期為一家全球成長最快的線上求職網站導入服務，該網站每月有 4,000 萬名訪客，且每天發送 5,000 萬則職缺提醒。該公司面臨訊息遭封鎖的問題，且無法掌握其根本原因。透過使用 Bandwidth 的 A2P 免付費簡訊解決方案，該公司得以透過送達回饋提升可視性，並達成大規模營運簡訊所需的吞吐量與發送量。

We remain unique in our ability to serve customers with our platform, nationwide All-IP Voice Network and dedicated customer support teams. Our customer support and operation teams are able to proactively mitigate deliverability issues and enable the company to navigate the rapidly changing messaging environment. In the case of this customer, our dedicated support teams collaborated with our network operations and control teams to educate our industry partners on the company's messaging traffic profile in order to unlock misappropriately blocked messages across different network providers. As a result of switching to Bandwidth's toll-free messaging solution, the response rate to the customers' job alert messages doubled.

我們在以平台、全國性 All-IP 語音網路與專屬客戶支援團隊服務客戶方面，仍具獨特優勢。我們的客戶支援與營運團隊能主動降低送達率問題，並協助客戶因應快速變動的簡訊環境。以該客戶為例，我們的專屬支援團隊與網路營運及控管團隊合作，向產業合作夥伴說明該公司的簡訊流量特徵，以解除不同網路供應商對其訊息的不當封鎖。因此，改用 Bandwidth 的免付費簡訊解決方案後，該客戶職缺提醒簡訊的回應率提升了一倍。

We are also pleased to announce a new customer relationship with a company that provides next-generation cloud-based residential and business VoIP solutions to communications service providers and cable companies. This customer enables many of the top 50 U.S. cable companies to virtualize voice infrastructure and serves more than 300,000 end users. The company selected Bandwidth's easy-to-use APIs to power voice calling and 911 functionality on their platform because of our outstanding quality and network reliability as well as our relentless focus on their success.

我們也很高興宣布與一家新客戶建立合作關係；該公司為通訊服務供應商與有線電視公司提供新一代、雲端式的住宅與商用 VoIP 解決方案。該客戶協助許多美國前 50 大有線電視公司將語音基礎設施虛擬化，並服務超過 30 萬名終端使用者。該公司選擇使用 Bandwidth 易於使用的 API，為其平台提供語音通話與 911 功能，原因在於我們卓越的品質與網路可靠性，以及我們對其成功不懈投入的專注。

Bandwidth will serve as the exclusive partner to the company on a go-forward basis to power voice on their platform for the majority of the company's existing customers. The company decided our robust APIs and owner-operated IP voice network were ideal to build user experiences and to enable connectivity to the cloud. We are excited about how this relationship uses our platform and network to open up new opportunities to serve large communications service providers and the cable company market.

Bandwidth 將在未來作為該公司的獨家合作夥伴，為其平台上公司現有客戶中的大多數提供語音能力。該公司認為我們強健的 API 以及由我們自營的 IP 語音網路，是打造使用者體驗並實現雲端連線的理想選擇。我們對於這項合作如何運用我們的平台與網路，開啟服務大型通訊服務供應商及有線電視公司市場的新機會感到振奮。

In addition, we are on track to complete deployment in the U.K. and the EU by the end of the year as previously reported. The build-out of our 2 data centers in Frankfurt and London is complete. We continue to make great progress to satisfy the regulatory requirements necessary to conduct business and to deliver our communications services internationally as planned. We have focused our efforts in those countries for which our existing customers have expressed the greatest demand. Today, we're authorized to conduct business in 13 European countries: the U.K., 11 members of the European Union and Switzerland. We have also obtained regulatory authority to provide telecommunication services in these 13 European countries as well.

此外，如先前所報告，我們正按計畫在年底前完成英國與歐盟的部署。我們在法蘭克福與倫敦的兩座資料中心建置已完成。我們持續取得重大進展，以滿足按計畫在國際間開展業務並交付通訊服務所需的監管要求。我們將重點放在既有客戶表達需求最強烈的那些國家。目前，我們已獲授權可在 13 個歐洲國家開展業務：英國、歐盟 11 個成員國以及瑞士。我們也已取得在這 13 個歐洲國家提供電信服務的監管許可。

In summary, our solid third quarter results demonstrate the fundamental strength of our business. That said, we learned important lessons from our largest scaling customers. This includes the Fortune 500 company win and a new category of strategic customers who are among the largest group we've ever engaged during a single period. These strategic customers prefer a single source and find value in our proposition to deliver the full capabilities of our platform and underlying network. Most of these strategic customers are committing to significant exclusivity provisions or at a minimum for Bandwidth to be the primary CPaaS provider. Such customers are among the broadest users of our platform and network that we've ever seen, combining voice, 911, messaging, numbers, number porting and toll-free simultaneously in order to replace their legacy incumbent providers.

總結而言，我們穩健的第三季業績展現了我們業務的根本實力。話雖如此，我們也從最大規模擴張的客戶身上學到重要的經驗。其中包括贏得一家《財富》500 強公司的訂單，以及一類新的策略型客戶；這些客戶是我們在單一期間內接觸過的最大客群之一。這些策略型客戶偏好單一來源，並認同我們能交付平台與底層網路完整能力的價值主張。這些策略型客戶中的多數承諾了相當程度的獨家條款，或至少讓 Bandwidth 成為其主要的 CPaaS 供應商。此類客戶是我們迄今所見對平台與網路使用最廣泛的客群之一，同時結合語音、911、訊息、號碼、攜碼與免付費等服務，以取代其既有的傳統既有供應商。

By contrast, our Internet giant customers in the past have often scaled single use cases to recognizable revenue with us faster than these strategics using a single part of our platform before expanding to other use cases. So instead of taking 60 to 90 days for onboarding, we now expect these types of strategics to take up to 180 days to both integrate multiple APIs and to port or move high volumes of mission-critical usage and numbers to our platform. These new kinds of strategic customer opportunities are large and expected or contractually committed to deliver many times more than the average strategic customer in annual revenue.

相較之下，我們過去的網際網路巨頭客戶，往往先以平台中的單一部分擴展單一使用情境，並比這些策略型客戶更快與我們達到可辨識的營收規模，之後才擴展到其他使用情境。因此，過去導入需 60 到 90 天，如今我們預期這類策略型客戶可能需要長達 180 天，才能同時整合多個 API，並將大量關鍵任務的使用量與號碼攜入或移轉至我們的平台。這些新型策略型客戶機會規模龐大，且預期或已在合約中承諾，其年度營收將是平均策略型客戶的數倍。

These new strategic customers are also going long, signing new contract term lengths that are up to 2.5x longer than our average 2-year term length. This bodes well for 2020 and beyond, but lowers our Q4 guidance, which Jeff will fully unpack in a moment. Simply put, for these new strategic accounts, we were accurate in forecasting when they would close and what their ultimate annual revenue contribution would be, but significantly underestimated the time it would take to onboard and transition usage from legacy incumbent providers to us. Looking ahead, we continue to be optimistic about our growth opportunities despite these dynamics with our largest scaling customers.

這些新的策略型客戶也採取更長期的合作，簽訂的新合約期限最長可達我們平均 2 年合約期限的 2.5 倍。這對 2020 年及之後是利多，但也降低了我們對第四季的指引；Jeff 稍後會完整說明。簡而言之，對於這些新的策略型客戶，我們在預測其何時簽約完成以及其最終年度營收貢獻方面是準確的，但我們嚴重低估了導入所需時間，以及將使用量從傳統既有供應商移轉到我們這裡所需的時間。展望未來，儘管最大規模擴張客戶出現這些動態，我們對成長機會仍保持樂觀。

I want to thank our team who remain focused on executing on our mission and delivering best-in-class service to our enterprise customers. With that, let me turn the call over to Jeff.

我要感謝我們的團隊，持續專注於落實使命，並為企業客戶提供同級最佳的服務。接下來，我把電話會議交給 Jeff。

Thank you, David, and good afternoon, everyone. Our team delivered another strong performance in Q3. During the third quarter, our total revenue was $60.5 million, up 20% year-over-year and $1.6 million above the high end of our guidance range.

謝謝你，David，各位下午好。我們的團隊在第三季再次交出強勁表現。第三季總營收為 6,050 萬美元，年增 20%，並較我們指引區間上緣高出 160 萬美元。

Within total revenue, CPaaS revenue was $51.5 million, up 24% year-over-year and more than $0.5 million above the high end of our guidance range. Other revenue contributed the remaining $9 million of total revenue, which was $1 million above our implied guidance and in line with the same period last year.

在總營收中，CPaaS 營收為 5,150 萬美元，年增 24%，並較我們指引區間上緣高出超過 50 萬美元。其他營收貢獻了總營收剩餘的 900 萬美元，較我們隱含指引高出 100 萬美元，且與去年同期持平。

Here are some key metrics in the third quarter that drove these results. Our expanded go-to-market team continues to attract new customers to our platform. We ended the third quarter with 1,610 active CPaaS customers, up 39% year-over-year, setting another record percentage increase for our business. We expect these newly onboarded customers to scale their usage over future periods as they become increasingly familiar with our platform, network and customer support. Our dollar-based net retention rate was 116% in the third quarter of 2019 compared to 113% in the previous quarter and 117% a year ago.

以下是第三季推動這些成果的一些關鍵指標。我們擴大的市場拓展團隊持續吸引新客戶加入我們的平台。第三季結束時，我們共有 1,610 位活躍 CPaaS 客戶，年增 39%，再度創下本公司業務的最高百分比增幅紀錄。我們預期這些新導入的客戶將在未來期間隨著對我們的平台、網路與客戶支援愈加熟悉而擴大使用量。2019 年第三季以美元計的淨留存率為 116%，高於前一季的 113%，與一年前的 117% 相比則略低。

Before moving on to profitability metrics, I would like to call out that I will be discussing non-GAAP results going forward. Our GAAP financial results, along with the full reconciliation between GAAP and non-GAAP results can be found in our earnings release.

在進入獲利能力指標之前，我想先說明，接下來我將討論非 GAAP 的結果。我們的 GAAP 財務結果，以及 GAAP 與非 GAAP 結果之間的完整調節表，皆可在我們的財報新聞稿中查閱。

Our third quarter 2019 non-GAAP gross profit, which excludes stock-based compensation and depreciation, was $29.1 million, yielding a gross margin of 48% as compared with the $24.1 million and 48% gross margin we achieved in the third quarter of 2018. Third quarter 2019 adjusted EBITDA was a loss of $600,000 compared to $2.3 million of adjusted EBITDA for the same period last year. This change was expected and reflects the investments we're making in sales and marketing as well as research and development to support the expansion of our platform. On a GAAP basis, we reported a third quarter net loss of $1 million or a loss of $0.04 per share based on 23.4 million weighted average shares outstanding.

我們 2019 年第三季非 GAAP 毛利（不含以股票為基礎的薪酬與折舊）為 2,910 萬美元，毛利率為 48%，相較於 2018 年第三季我們達成的 2,410 萬美元毛利與 48% 毛利率。2019 年第三季調整後 EBITDA 為虧損 60 萬美元，相較於去年同期調整後 EBITDA 為 230 萬美元。這項變化符合預期，反映我們在銷售與行銷以及研發方面的投資，以支持平台擴張。以 GAAP 基礎計算，我們第三季淨損為 100 萬美元，或每股虧損 0.04 美元，係以 2,340 萬股加權平均流通股數計算。

Our non-GAAP net loss in the third quarter was $1.4 million or a loss of $0.06 per share based on 23.4 million weighted average shares outstanding. This compares to our guidance for the third quarter of a net loss of $0.14 to $0.16 per share. A favorable non-GAAP net loss variance as compared to our guidance was driven by an outperformance in gross profit and operating expense. During the third quarter, net cash from operating activities produced $1.9 million, and we utilized $4.4 million in free cash flow, which includes $6.3 million of purchases of property and equipment as well as capitalized software development cost for internal use.

第三季非 GAAP 淨損為 140 萬美元，或每股虧損 0.06 美元，係以 2,340 萬股加權平均流通股數計算。相較之下，我們對第三季的指引為每股淨損 0.14 至 0.16 美元。相對於指引，非 GAAP 淨損的有利差異主要來自毛利與營業費用表現優於預期。第三季營運活動產生的淨現金為 190 萬美元，而我們使用了 440 萬美元的自由現金流，其中包含 630 萬美元的固定資產購置，以及供內部使用的資本化軟體開發成本。

Now I'd like to expand our thoughts regarding our financial outlook. As David previewed, we have revised our 2019 annual guidance to reflect several strategic customer wins that are now expected to scale their platform usage later than previously anticipated. This includes the 5-year multimillion dollar agreement with a Fortune 500 company announced as an agreement in principle on last quarter's earnings call and executed in full shortly thereafter. The exclusivity for many services and the breadth of platform engagement required to deliver our full suite of services at scale all at once has taken longer than expected and will result in a delayed revenue ramp. Likewise, we're seeing a similar timing impact with extended usage ramps from other sizable wins in this new category of strategic customers David referenced, which, in aggregate, meaningfully contributed to our 2019 annual guidance revision.

現在我想進一步闡述我們對財務展望的看法。如 David 先前所預告，我們已修訂 2019 年全年財測指引，以反映數個策略性客戶的勝出案；這些客戶目前預期其平台使用量的擴張時點將較先前預期更晚。其中包括與一家《財富》500 大企業簽訂的為期 5 年、數百萬美元的協議；該協議在上季財報電話會議中以原則性協議形式宣布，並於其後不久完成正式簽署。由於多項服務的獨家性，以及為一次性以規模交付我們完整服務組合所需的平台參與廣度，推進時間比預期更長，將導致營收爬坡延後。同樣地，我們也在 David 所提及、此一新類別的策略性客戶中，看到其他幾筆大型勝出案的使用量爬坡期延長而帶來類似的時點影響；合計而言，這些因素對我們 2019 年全年指引的修訂有顯著貢獻。

We failed to estimate the onboarding period for these strategic customers correctly in our last earnings call. The majority of the guidance revision is a timing issue. Of the following detailed annual 2019 guidance revision, we expect to capture nearly half of it or $4 million of signed revenue in the first quarter of 2020 and approximately $2 million of the remainder during the second quarter.

在上次財報電話會議中，我們未能正確估計這些策略性客戶的導入期。本次指引修訂的大部分屬於時點問題。就以下所詳述的 2019 年全年指引修訂而言，我們預期其中近一半、亦即 400 萬美元的已簽約營收，將在 2020 年第一季認列，剩餘部分約 200 萬美元則在第二季認列。

For the full year 2019, we expect CPaaS revenue to be in the range of $194.8 million to $195.3 million or up 19% at the midpoint of the range. We expect 2019 total annual revenue to be in the range of $229 million to $229.5 million, up 12% at the midpoint of the range. Non-GAAP earnings per share for 2019 is expected to be in the range of a loss of $0.37 to $0.39 per share. This outlook assumes weighted average shares outstanding of approximately 22.6 million.

就 2019 年全年而言，我們預期 CPaaS 營收將介於 1.948 億美元至 1.953 億美元之間，以區間中點計年增 19%。我們預期 2019 年全年總營收將介於 2.29 億美元至 2.295 億美元之間，以區間中點計年增 12%。2019 年非 GAAP 每股盈餘預期為每股虧損 0.37 美元至 0.39 美元。此展望假設加權平均流通在外股數約為 2,260 萬股。

Finishing our thoughts on our outlook for the fourth quarter 2019, we expect CPaaS revenue to be in the range of $50.3 million to $50.8 million or up 15% year-over-year at the midpoint of the range at $50.6 million. This contributes to our total revenue guidance for the fourth quarter of $58.4 million to $58.9 million.

延續我們對 2019 年第四季展望的說明，我們預期 CPaaS 營收將介於 5,030 萬美元至 5,080 萬美元之間，以區間中點 5,060 萬美元計年增 15%。這也構成我們第四季總營收指引 5,840 萬美元至 5,890 萬美元。

Turning to fourth quarter profitability. Non-GAAP earnings per share is expected to be a loss in the range of $0.15 to $0.17 per share. This outlook assumes weighted average shares outstanding of approximately 23.5 million.

接著談第四季獲利能力。非 GAAP 每股盈餘預期為每股虧損 0.15 美元至 0.17 美元。此展望假設加權平均流通在外股數約為 2,350 萬股。

While we historically haven't provided forward year guidance on our third quarter calls, we believe it's prudent at this time to provide our initial thoughts on fiscal 2020 CPaaS revenue growth. Our team is proud of meeting or exceeding our quarterly guidance for top and bottom line growth for 9 straight quarters since becoming a public company. We are deeply committed to accurately managing investor expectations and are disappointed in the timing issues we discussed. Previewing our 2020 CPaaS revenue growth now rather than waiting until February is consistent with that commitment.

雖然我們過去在第三季電話會議上通常不提供下一年度的前瞻指引，但我們認為此時提供我們對 2020 會計年度 CPaaS 營收成長的初步看法是審慎之舉。自成為上市公司以來，我們的團隊已連續 9 個季度在營收與獲利（上、下線）成長方面達成或超越我們的季度指引，對此深感自豪。我們對於精準管理投資人預期有高度承諾，並對我們所討論的時點問題感到失望。現在就預告 2020 年 CPaaS 營收成長，而非等到 2 月才提供，與此一承諾一致。

We believe our annual 2020 CPaaS revenue will reaccelerate to approximately 22% and are committed to making strides in 2020 toward our goal of returning to profitability in 2021. As a final note, there has never been a period where we've had so many large customers trusting our capabilities to deliver their communication needs. We're excited for our team to win more of these broad relationships. We now better understand the onboarding time lines that accompany these types of large customer opportunities and remain focused on executing on our plan.

我們相信 2020 年全年 CPaaS 營收將重新加速至約 22%，並承諾在 2020 年朝向 2021 年恢復獲利的目標取得進展。最後補充一點，從未有任何一段期間像現在這樣，有如此多大型客戶信任我們的能力來滿足其通訊需求。我們很期待團隊能贏得更多這類廣泛的合作關係。我們現在更了解這類大型客戶機會所伴隨的導入時程，並將持續專注於按計畫執行。

With that, I will turn the call back over to the operator for your questions.

接下來我把電話交回給接線員，開始問答。

(Operator Instructions) Our first question comes from the line of Richard Davis with Canaccord.

(接線員指示) 我們的第一個問題來自 Canaccord 的 Richard Davis。

Quick question. So thank you for at least giving out the details of -- at least a broad spectrum about 2020. I mean, I know this is a hard question to ask or answer, whatever, but to what extent -- what degree of confidence -- and I know this is a weird thing, but it's like, on a scale of 1 to 10, like are you -- like, is it like we're setting the high jump bar and would like to level the pads or do you have to clear a 7-foot high jump bar? How do you -- I'm just trying to -- because I know this is a question we'll get, is like, well, how confident are you guys? And then we can obviously titrate it ourselves on that. But just help us understand how this plays out on kind of confidence level.

快速問一個問題。所以，至少謝謝你們把 2020 年的細節——至少是大方向——說出來。我的意思是，我知道這是個很難問或很難答的問題，但在多大程度上——你們的信心有多高——我知道這樣問有點怪，但就像 1 到 10 的量表一樣，你們——比如說，這像是我們把跳高的橫桿設得很高，然後希望把墊子墊平，還是你們必須跨過 7 英尺高的橫桿？你們怎麼看——我只是想——因為我知道我們會被問到這個問題：你們到底有多有信心？然後我們當然可以自己去調整、衡量。但請幫我們理解一下，這在信心層級上大概會怎麼呈現。

Thanks, Richard. This is David. So our forecast for Q4 was based on estimates, our understanding and confidence about $4 million that we recapture in Q1 and $2 million in Q2, and our 2020 guide is based on evidence. So this handful of new strategic customers that represent characteristics and attributes that are new to us are signed, and they're not just signed; in several cases, they're integrated. And we have revenue that is flowing. So instead of estimates, we're dealing with evidence, and I like your analogy. It's probably somewhere between the blue pad and the high bar, but we are extremely confident, not just about this revenue only being a timing issue, but about achieving the 2020 number that we put out there.

謝謝你，Richard。我是 David。我們對第四季的預測是基於估算，也就是我們對在第一季追回約 400 萬美元、第二季追回 200 萬美元的理解與信心；而我們對 2020 年的指引是基於證據。因此，這少數幾個對我們而言在特徵與屬性上都屬新的策略性客戶已完成簽約，而且不只是簽約；在若干案例中，他們已完成整合。而且我們已有營收正在流入。所以我們面對的是證據而非估算；我也喜歡你的比喻。大概介於藍色墊子和高橫桿之間，但我們非常有信心——不僅是這些營收只是時點問題，也包括達成我們所提出的 2020 年數字。

And then just real quickly. The delay in deployment was that -- did that upset your customers at all, or were they good with that? Or is there any friction with regard to that? And then I'll turn it over to the next person.

然後再很快問一下。部署延遲這件事——有讓你們的客戶不高興嗎？還是他們可以接受？或者在這方面有任何摩擦嗎？然後我就把時間交給下一位。

No friction whatsoever. Our team moves extremely quickly and is agile. So the timetables that we set, we called a tune that was pretty quick, not understanding that these customers who have the largest installed customer bases that we've ever ported over to our platform simultaneously move slower than we do.

完全沒有任何摩擦。我們的團隊行動非常迅速且具敏捷性。所以我們所設定的時程，我們把節奏訂得相當快，卻沒有理解到，這些客戶同時要把我們迄今為止最大規模的既有客戶基礎移轉到我們平台上時，他們的動作會比我們慢。

Our next question comes from the line of Mark Murphy with JPMorgan.

我們的下一個問題來自 JPMorgan 的 Mark Murphy。

What type of messaging are you receiving from some of the higher growth software and Internet customers, the companies like Zoom and RingCentral, Slack, Google, Microsoft, Amazon, et cetera? Do you feel like they're leaning in and using your network more aggressively? Or are any of them indicating that they're less confident or would be pulling back at all?

你們從一些成長較快的軟體與網際網路客戶——例如 Zoom、RingCentral、Slack、Google、Microsoft、Amazon 等——那邊收到什麼樣的訊息？你們覺得他們是否更積極地投入、更加猛烈地使用你們的網路？或者他們之中是否有人表示信心降低，或會在任何程度上縮手？

Mark, they're growing very well, and our DBNR of 116% is the evidence of that. But overall, both UCaaS and the business VoIP segment is growing well.

Mark，他們成長得非常好，而我們 116% 的 DBNR 就是證明。但整體而言，UCaaS 與商務 VoIP 這兩個區塊都成長良好。

Okay. Is there any way to just help us verify and size up the value of that new business you booked in Q3? I think you're talking about half a dozen strategic customers who are signing the longer contracts? In other words, can you comment on maybe how bookings grew year-over-year? Or is there something that's visible to you in a backlog trend or anything else you can speak to?

好的。有沒有什麼方式可以協助我們驗證並衡量你們在第三季所簽下新業務的價值？我想你指的是那半打左右、簽較長期合約的策略性客戶？換句話說，你能否評論一下預訂（bookings）年增的情況？或者你們是否能從待履行訂單（backlog）趨勢或其他任何你能談的指標中看出些什麼？

So Mark, this is Jeff. It's a usage-based revenue business, so you're not going to see it in a booking or deferred revenue number. That being said, we've quantified that the timing issue is a $6 million issue, of which we have a high degree of confidence that we will realize $4 million of that in first quarter of 2020 and $2 million in second quarter of 2020. And that confidence comes from the progression we've made on the integration over the last 90 days and what we're seeing with these customers as well as what David attributed to. These are signed agreements with existing volumes today and we need to get through an integration and testing period. That's where we're at now. And once you get through that, that's when the volumes come in.

Mark，我是 Jeff。這是一個以使用量為基礎的營收業務，所以你不會在預訂或遞延收入數字中看到它。話雖如此，我們已量化這個時點問題是 600 萬美元，其中我們高度有信心在 2020 年第一季實現其中 400 萬美元、在 2020 年第二季實現 200 萬美元。而這份信心來自於我們過去 90 天在整合方面取得的進展、以及我們從這些客戶身上看到的情況，還有 David 所提到的因素。這些都是已簽署的協議，且目前就有既有的量，我們需要完成整合與測試期。我們現在就在這個階段。一旦度過那個階段，量就會進來。

And I would only add, Mark, to answer your question as well, that the large Fortune 500 customer that we talked about, we did describe in 2020 is becoming among our very largest customers.

我只想補充一下，Mark，為了回答你的問題，我們提到的那家大型《財富》500 強客戶，我們確實描述過它在 2020 年將成為我們最大的客戶之一。

Okay. So -- okay. Understanding it's not going to be -- you can't speak to it from a standpoint of bookings or deferred revenue. Is that -- I mean, do you feel as though you signed a much higher volume of kind of new potential business in Q3 than you did in Q3 a year ago?

好的。所以——好的。我理解你們不會——你們無法從預訂或遞延收入的角度來談。那——我的意思是，你是否覺得你們在第三季簽下的、屬於新潛在業務的量，遠高於去年第三季？

By far.

高出非常多。

By far, okay. Then, Jeff, as well, I think we already had CPaaS revenue growing 22% next year. And so with that coming down a bit on the base year of '19, I guess I'm trying to understand, if the deployments are slipping from 2019 to 2020, why would that maybe not be just growing a bit faster there in the out year?

高出非常多，好。那麼，Jeff，另外我想我們原本就預期明年 CPaaS 營收成長 22%。因此，隨著 2019 基期稍微下修，我想理解的是：如果部署從 2019 延後到 2020，為什麼在更往後的年度，那邊不會只是成長得更快一些？

So Mark, this is David. I'll go first and then hand it over to Jeff. It's a logical intuitive question. We've had a timing issue in the fourth quarter of '19, pushed to '20. We're guiding 22% in 2020 out of principle. We're a team that values meeting and exceeding expectations as we have for our first 9 straight quarters as a public company. And we're also a team that is operating against the principle of returning to profitability in 2021. And that remains something we've talked about from day 1 as a team and a company and we are committed to that as the primary guiding principle leading us into 2021. And so this guide reflects both a pretty keen eye on the top and bottom lines and the fact that we value very highly managing expectations across all the constituents we -- constituencies that we serve, including investors. Both those principles inform how we approach 2020. But let me ask Jeff to also add to that.

Mark，我是 David。我先回答，然後再交給 Jeff。這是個合乎邏輯、直覺的問題。我們在 2019 年第四季遇到一個時點問題，推遲到 2020 年。我們基於原則在 2020 年給出 22% 的指引。我們是一個重視達成並超越預期的團隊，作為上市公司，我們已連續 9 個季度做到這點。同時，我們也依循一個原則在運作：於 2021 年回到獲利。這仍然是我們從第一天起就一直談的事，作為團隊與公司，我們承諾以此作為帶領我們邁向 2021 的首要指導原則。因此，這份指引同時反映了我們對營收與獲利（上、下兩條線）的敏銳關注，以及我們非常重視在我們所服務的所有利害關係人——包括投資人——之間管理預期。這兩項原則共同形塑我們對 2020 年的做法。不過也讓 Jeff 再補充一下。

Thanks, David. What I'm going to add is that we always endeavor to provide you the best forecast at the time it's provided, and we definitely had a learning here in this quarter and we own that. Short term, this is a lot of pain. Long term, I think this is a fantastic thing for the business because we have large customers who are bringing high volumes and stronger ways of being single-sourced and primary provider terms in contracts with longer-term lengths, trying to integrate and turn up multiple products at once. And I think that's a favorable thing for our business.

謝謝，David。我要補充的是，我們一向致力於在提供指引的當下，給你們最好的預測；而我們這一季確實有學到一課，這點我們承擔。短期來看，這很痛。長期來看，我認為這對業務是非常棒的事情，因為我們有大型客戶帶來高使用量，並且在合約中以更強的方式採取單一來源（single-sourced）與主要供應商（primary provider）條款、合約期限更長，並嘗試同時整合並上線多項產品。我認為這對我們的業務是有利的。

Our next question is coming from the line of Will Power with Robert W. Baird & Co.

下一個問題來自 Robert W. Baird & Co. 的 Will Power。

Maybe first, just a clarification. So thanks for the color on the numbers, on the different impacts here. I guess as you talk about the $4 million moved into Q1, $2 million into Q2 of next year, is the majority of that from the Fortune 500 company? And if so, maybe any other color on time lines for the other cohort of like companies that you're expecting to ramp, just trying to get comfort that those companies are all on track as well.

也許先釐清一下。謝謝你們對數字與各項影響的補充說明。我想，當你們談到有 400 萬美元移到明年第一季、200 萬美元移到明年第二季時，其中大部分是否來自那家《財富》500 強公司？如果是的話，對於其他那一批預期會放量的公司，其時間表是否還能再多給一些資訊？我只是想更安心，確保那些公司也都按計畫進行。

Sure, Will. Yes. So we haven't sized exactly that particular Fortune 500 customer. What I can tell you is that -- related to the timing issue, that was the biggest factor in the annual guidance revision. And given that it was an existing customer, it will impact our dollar-based net retention going forward in a positive way. But as far as the rest of the business outside these new strategics who are sort of behaving in a different way and it's very favorable once again, long term, our new customer metrics remain strong, and we feel really good about the business and a lot of things that we accomplished in the third quarter.

當然，Will。是的。我們尚未精確量化那個特定《財富》500 強客戶的規模。我可以告訴你的是——就這個時點問題而言，它是我們調整全年指引的最大因素。而且由於它是既有客戶，未來將以正面方式影響我們的美元基礎淨留存率（dollar-based net retention）。但就這些新策略性客戶之外的其餘業務而言——他們的行為模式有些不同，而長期來看再次強調是非常有利的——我們的新客戶指標仍然強勁，我們對業務感覺非常好，也對第三季完成的許多事情感到很滿意。

So let me -- maybe just the second question, and I guess, maybe you partly answered it, given it's existing customers that will have impact on your net retention rate, I guess, in Q4. I know one of the elements you expected to help with the Q4 ramp was growing usage among your existing customers, I think, broadly. So what are you seeing across the base generally in terms of retention rate? And how do we think about the 116% number into Q4? Will that now decline because of that big customer? Or what's kind of the trajectory there?

那我——也許第二個問題，我想你可能已部分回答了：既然是既有客戶會影響你們第四季的淨留存率。我知道你們原本預期能推動第四季放量的其中一個要素，是你們既有客戶整體使用量的成長。那麼，就整體客群而言，你們看到的留存率表現如何？以及我們該如何看待第四季的 116% 這個數字？它會因為那個大客戶而下滑嗎？或是那邊的走勢大概會如何？

It will. So the way I would think about it, Will, is the midpoint of our guidance for fourth quarter CPaaS revenue was 15%. I think you can take a look at our trend on new logo growth, which was about 8% in third quarter, and you can kind of back into what the dollar-based net retention will be in fourth quarter and get to a number there. And it's certainly going to be lower than it was in third quarter.

會的。Will，我會這樣看：我們第四季 CPaaS 營收指引的中位數是 15%。你可以看看我們新客戶（new logo）成長的趨勢，第三季大約是 8%，然後你大致可以回推出第四季的美元基礎淨留存率，得到一個數字。而它肯定會比第三季低。

To explain some of that, fourth quarters are always challenging for us because we have some headwinds, and it relates -- being, once again, in a usage-based revenue business, we're driven by effective business days and the fact that we have more holidays in the fourth quarter, there's always, on a sequential basis, more pressure on fourth quarter. Now in previous years, this has been masked by other favorable factors driving higher usage, like last year, where we had election year-related platform usage as well as another large customer that drove higher usage that masked this headwind from the effective business days. We don't see that this year happening, and that's why the numbers look like they do.

為了說明其中一部分，第四季對我們來說一向具有挑戰性，因為我們面臨一些逆風；這與——再次強調——我們身處以使用量為基礎的營收模式有關，我們的表現取決於有效工作日數，而第四季假期較多，因此在環比基礎上，第四季總是承受較大的壓力。過去幾年，這種情況曾被其他有利因素所掩蓋，因為那些因素推動了更高的使用量；例如去年，選舉年相關的平台使用量，以及另一位大型客戶帶來的更高使用量，掩蓋了有效工作日數帶來的逆風。我們今年沒有看到這種情況發生，這也是為什麼數字看起來會是現在這樣。

Okay. And maybe just one quick additional follow-up. Just on the new customers that are ramping, is that -- and given some of the timing delays, is that requiring more investment from you all? Should we expect commensurate increase in cost through the first half of next year to kind of support those efforts?

好的。另外也許再追問一個很快的問題。關於正在爬坡的新客戶——考量到一些時程延遲——這是否需要你們投入更多資源？我們是否應預期到明年上半年成本會相應增加，以支持這些工作？

No. This is all part of our plan. Again, we knew these customers and these opportunities have been identified. It's really just the onboarding that's been delayed. So I wouldn't make any changes along that way. This is really sort of, in many ways, normal course, maybe just a confluence of more larger opportunities at one time and behaving in a way where they want to integrate with us more and are trusting our capabilities more than ever.

不會。這些都在我們的計畫之內。再次說明，我們早已知道這些客戶，且這些機會也已被辨識出來。真正延遲的是導入（onboarding）。因此我不會因此做任何調整。這在很多方面其實算是正常進程，只是可能同一時間出現了更多大型機會的匯聚，而且他們希望與我們更深度整合，並且比以往更信任我們的能力。

(Operator Instructions) Our next question comes from the line of Andrew King with Dougherty & Co.

(接線員指示) 我們的下一個問題來自 Dougherty & Co. 的 Andrew King。

Just 2 quick ones. First, with international, can you just give us a little bit more color into when you see those revenues starting to ramp and come into play? And then also, since you had mentioned that you're seeing a longer process of onboarding from the time of closing the sale, about how long would you say you're now seeing these new logos take for revenue recognition?

兩個很快的問題。第一，關於國際業務，你能否再多提供一些細節，說明你們何時會看到這些營收開始爬坡並開始發揮作用？第二，你提到從成交到導入的流程變長了；就營收認列而言，你們現在看到這些新客戶（new logos）大約需要多久？

You bet. So our international deployment is on track, and our 2020 guide includes our international revenue forecast for the year. It's revenue that will come throughout 2020, but it's captured within our first 2020 view that we gave tonight. In response to your second question, these large customers are different from those who are in our base averaging 60 to 90 days to onboard, integrate and begin generating recognizable revenue. And we are including the lessons learned to forecast these as up to 180 days to generate recognizable revenue, given the breadth of the platform that they embrace right out of the gate from their large existing customer bases.

當然可以。我們的國際部署進度如期進行，而我們的 2020 年指引已包含今年的國際營收預測。這些營收會在 2020 年全年逐步貢獻，但已包含在我們今晚提供的 2020 年初步展望之中。回應你的第二個問題，這些大型客戶不同於我們既有客群；既有客群平均需要 60 到 90 天完成導入、整合並開始產生可認列的營收。我們也把經驗教訓納入預測：考量到他們一開始就從其龐大的既有客戶基礎中，採用我們平台的廣泛功能，我們預估這類客戶可能需要長達 180 天才會開始產生可認列的營收。

Our next line comes -- our next question comes from the line of Meta Marshall with Morgan Stanley.

我們的下一個問題來自 Morgan Stanley 的 Meta Marshall。

Great. Maybe just focusing on for a second that the new international or kind of bogey account on international is not part of the 6 strategic accounts or is it? And just how we should expect international revenue to kind of ramp throughout the year. And then maybe the second question. You guys added a number of customers throughout the quarter. I know you've spent a lot of time on the strategic and kind of larger customers, but just what you're seeing in the makeup or kind of sales effectiveness around just kind of the smaller customer base.

很好。先聚焦一下：新的國際客戶或你們在國際上的目標（bogey）客戶，是否不屬於那 6 個策略性客戶（strategic accounts），還是其實包含在內？另外，我們應該如何預期國際營收在全年逐步爬坡的節奏？第二個問題是，你們在本季新增了不少客戶。我知道你們花了很多時間談策略性與較大型的客戶，但就較小型客戶基礎的組成，或銷售效率而言，你們觀察到什麼趨勢？

Thanks, Meta. The international customer you mentioned is within this cohort that we described as our new category. And the international revenue throughout 2020, we haven't talked about sequencing by quarter how that revenue comes in. What is consistent and that you'll remember is how we are following demand in those markets where we are authorized to do business. And that demand is from our existing customers. So those jurisdictions come online, and we are working with our existing customers as the initial revenue contributors for international, but haven't provided more detail about the quarter-over-quarter slope of that revenue throughout 2020.

謝謝你，Meta。你提到的那位國際客戶，屬於我們所描述的「新類別」這一批客戶群。至於 2020 年全年的國際營收，我們尚未按季度談論其收入進來的排序（sequencing）。一致且你會記得的是：我們是在那些已獲授權可營運的市場中，跟隨需求來推進。而這些需求來自我們既有客戶。因此，當那些司法管轄區上線後，我們會先與既有客戶合作，作為國際業務的初期營收貢獻者；但我們尚未提供 2020 年國際營收逐季變化斜率的更多細節。

And then on the kind of just the normal course, everyday customers that you're bringing on, just what you're seeing and maybe as far as ARPUs versus expected or sales effectiveness versus expected.

那再回到比較日常、一般性的新客戶導入，你們看到的情況如何？例如 ARPU 是否符合預期，或銷售效率是否符合預期？

Yes, we've set a new record for new logos coming onboard in Q3, and it's a tribute to the sales leadership of our greatly expanded sales teams and our marketing team, and those 2 teams are as efficient as we've ever seen in the past. And so we've maintained that very, very efficient spend on marketing and sales to generate those logos. And I think that is important because returning to profitability depends upon that continued efficiency.

是的，我們在第三季創下新客戶（new logos）導入數量的新紀錄，這要歸功於我們大幅擴編後的銷售團隊之銷售領導力，以及我們的行銷團隊；而這兩個團隊的效率是我們過去所見最佳之一。因此，我們在行銷與銷售上的投入仍維持非常、非常高的效率，以產生這些新客戶。我認為這點很重要，因為回到獲利狀態取決於這種效率能否持續。

As to the ARPU, we are tracking ARPU across the base, including this new cohort of customers. There's no fundamental change, either with the base of customers that we have today or what we anticipate as we forecast 2020.

至於 ARPU，我們正在追蹤整體客群的 ARPU，包括這一批新類別客戶。無論是我們目前的客戶基礎，或是我們在預測 2020 年時所預期的情況，都沒有出現根本性的變化。

We have reached the end of our question-and-answer session. Allow me to hand the floor back over for closing remarks.

我們的問答環節到此結束。請允許我把會議交回給管理層作結語。

Thank you, and thanks to everyone on the call. Very proud of the entire team and looking forward to closing out this year strong and to 2020 and beyond. Thank you.

謝謝，也感謝所有參與電話會議的各位。我們為整個團隊感到非常自豪，也期待今年能強勁收官，並展望 2020 年及其後的發展。謝謝。

Thank you. This concludes today's conference. You may disconnect your lines at this time, and thank you for your participation.

謝謝。今天的電話會議到此結束。您現在可以掛斷電話線，感謝您的參與。